FX.co ★ GBP/JPY: Bullish bias (November 8, 2013)

Overview:
GBP/JPY is consolidating with bullish bias. GBP/JPY is undermined by weak euro sentiment; increased investor risk aversion; Japan exporter sales. But GBP/JPY losses are tempered by demand from Japan importers; positions adjustment before weekend. Daily chart is negative-biased as MACD is bearish, stochastics stays suppressed at oversold, five-day moving average is below 15-day MA and declining.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 158.75 and the second target at 159.9. In alternative scenario, if the price moves below its pivot point, short positions are recommended with the first target at 157.2, the breach of this target will move the pair further downwards and one may expect the second target at 156.65. The pivot point stands at 157.65.

Resistance levels:
158.75
158.9
159.35
Support levels:
157.2
156.65
156.15